In March 2024, Mumbai had the highest construction cost index at ***, while Chennai had the lowest at ***. During the presented period, the construction cost reached its peak in March 2022.

Construction Cost Index: Road: Delhi data was reported at 151.990 Oct2007=100 in Jul 2021. This records an increase from the previous number of 151.970 Oct2007=100 for Jun 2021. Construction Cost Index: Road: Delhi data is updated monthly, averaging 149.515 Oct2007=100 from Oct 2007 (Median) to Jul 2021, with 166 observations. The data reached an all-time high of 151.990 Oct2007=100 in Jul 2021 and a record low of 100.000 Oct2007=100 in Oct 2007. Construction Cost Index: Road: Delhi data remains active status in CEIC and is reported by Construction Industry Development Council. The data is categorized under Global Database’s India – Table IN.EB020: Construction Cost Index: Construction Industry Development Council: Delhi.

The India Construction Market Report is Segmented by Sector (Residential, Commercial and Infrastructure), by Construction Type (New Construction and Renovation), by Construction Method (Conventional On-Site, and More), by Investment Source (Public and Private), and by Region (North India, South India, West India, East India and Central India). The Market Forecasts are Provided in Terms of Value (USD).

In 2027, it was estimated that the overall construction materials consumption in India would reach *** billion U.S. dollars. It would create huge opportunities for the B2B materials market in India. It was estimated the B2B materials market would reach *** trillion dollars during the same period.

Construction output in India decreased 0 percent in October of 2025 over the same month in the previous year. This dataset provides the latest reported value for - India Infrastructure Output - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The India Commercial Construction Market Report is Segmented by Commercial Sector Type (Office, Retail, Industrial and Logistics, and Others), by Construction Type (New Construction and Renovation), by Investment Source (Public and Private), and by Region (North India, South India, West India, East India, and Central India). The Market Forecasts are Provided in Terms of Value (USD).

India Residential Construction Market Report is Segmented by Type (Apartment & Condominiums, Villas and Landed Houses), Construction Type (New Construction, Renovation), Construction Method (Conventional On-Site, Modern Methods of Construction), Investment Source (Public, Private), and Geography (North India, South India, West India, East & North-East India, and More). The Market Forecasts are Provided in Terms of Value (USD).

In fiscal year 2024, the Wholesale Price Index of clay building materials across India was around ***. This price index value increased by about ** percent from the base financial year of 2012. An overall decrease in the price index was seen over the years from financial year 2013 in the country.

India Implicit Price Index: NDP: Construction data was reported at 211.700 1993-1994=100 in 2004. This records an increase from the previous number of 202.900 1993-1994=100 for 2003. India Implicit Price Index: NDP: Construction data is updated yearly, averaging 177.050 1993-1994=100 from Mar 1995 (Median) to 2004, with 10 observations. The data reached an all-time high of 211.700 1993-1994=100 in 2004 and a record low of 109.000 1993-1994=100 in 1995. India Implicit Price Index: NDP: Construction data remains active status in CEIC and is reported by Central Statistics Office. The data is categorized under Global Database’s India – Table IN.AJ007: NAS 1993-1994: Implicit Price Index. Rebased from 1993-1994 base to 1999-2000 base. Replacement series ID: 92073801

The India construction market attained a value of USD 687.38 Billion in 2024. The market is expected to grow at a CAGR of 8.60% during the forecast period of 2025-2034. By 2034, the market is expected to reach USD 1568.54 Billion.

The Indian government has launched ambitious programs like the National Infrastructure Pipeline, Bharatmala, and Gati Shakti to build roads, highways, ports, airports, and urban transit. These projects not only demand huge volumes of materials like steel, cement, and aggregates, but also drive demand for construction equipment, logistics, and contracting capacity. Public-sector investment also raises private sector confidence, unlocking more financing, joint ventures, and PPP (public private partnerships).

The growing adoption of digital tools is transforming the India construction market dynamics. Some of these include Building Information Modeling (BIM) for design/planning; drones, IoT, AI for site monitoring, project tracking and predictive maintenance. Modular/prefabricated construction methods are being adopted to speed up timelines and lower costs. In July 2025, Tata Steel signed an MoU with Australia’s InQuik to introduce modular bridge tech in India, for faster, cost-efficient, climate resilient bridge construction. Digital tools also help labor management, source tracking, and safety compliance.

In the financial year 2022, the contribution of the construction sector to the total economic output was **** percent. According to the forecast, the contribution was likely to gradually reduce to *** percent by 2030.

Construction Cost Index: Urban Infrastructure: Oct2007=100: Mumbai data was reported at 141.960 Oct2007=100 in Jul 2021. This records an increase from the previous number of 141.940 Oct2007=100 for Jun 2021. Construction Cost Index: Urban Infrastructure: Oct2007=100: Mumbai data is updated monthly, averaging 139.835 Oct2007=100 from Oct 2007 (Median) to Jul 2021, with 166 observations. The data reached an all-time high of 141.960 Oct2007=100 in Jul 2021 and a record low of 100.000 Oct2007=100 in Oct 2007. Construction Cost Index: Urban Infrastructure: Oct2007=100: Mumbai data remains active status in CEIC and is reported by Construction Industry Development Council. The data is categorized under Global Database’s India – Table IN.EB046: Construction Cost Index: Construction Industry Development Council: Mumbai.

Discover the booming Indian construction industry, projected to grow at a CAGR exceeding 6% until 2033. This in-depth analysis reveals market size, key drivers, trends, challenges, major players (L&T, Shapoorji Pallonji, etc.), and regional breakdowns. Learn about investment opportunities in this dynamic sector. Recent developments include: March 2023: L&T has inked an MoU with Odisha-based non-profit SLS Trust for setting up a Skill Training Hub at Badampahar in Odisha's Mayurbanj district. This facility will comprise classrooms, state-of-the-art simulators, yards for practical training, and residential accommodation for the trainees., November 2022: MEIL is building Mongolia's first greenfield oil refinery in Telangana. Megha Engineering & Infrastructures Limited (MEIL) has received a Letter of Award (LOA) for the Mongolia Refinery Project, which includes the construction of Mongolia's first oil refinery. MEIL will build EPC-2 (Open Art Units, Utilities & Offsites, Plant Buildings) and his EPC-3 (Captive Power Plants) in Mongolia at a cost of US$790 million. Engineers India Limited is the project management consultant for this G2G partnership project. The project is part of the 'Development Partnership Management' initiative of the Ministry of External Affairs, Government of India.. Notable trends are: Infrastructure projects drives the market.

In 2022, kutcha, services and etc. had the biggest share in the construction materials market at ** percent. It was followed by cement, at ** percent. During the same period, the construction consumption in India was around *** billion U.S. dollars.

There was an infrastructure investment of around *** billion U.S. dollars in the construction industry across India in fiscal year 2017. In January 2019, India's construction sector had a contribution of over *** trillion Indian rupees to the country's GDP. This was an all-time high contribution recorded through the sector. In 2019, railway sector in the nation received the highest ever budgetary allocation.

In financial year 2022, the total credit of the construction indsutry in India reached *** billion Indian rupees. It was a slight increase in comparsion with the previous year. During the presented period, in 2019, the total credit reached its peak at ***** billion rupees.

Construction Cost Index: Building: Oct2007=100: Shimla data was reported at 145.220 Oct2007=100 in Jul 2021. This records an increase from the previous number of 145.200 Oct2007=100 for Jun 2021. Construction Cost Index: Building: Oct2007=100: Shimla data is updated monthly, averaging 144.560 Oct2007=100 from May 2012 (Median) to Jul 2021, with 111 observations. The data reached an all-time high of 145.220 Oct2007=100 in Jul 2021 and a record low of 126.560 Oct2007=100 in May 2012. Construction Cost Index: Building: Oct2007=100: Shimla data remains active status in CEIC and is reported by Construction Industry Development Council. The data is categorized under Global Database’s India – Table IN.EB068: Construction Cost Index: Construction Industry Development Council: Shimla.

According to a survey conducted in 2023 in India, 39 percent of the respondents describe the level of market challenges of the construction industry in the next 12 months as a normal business cycle and global challenges. ** percent of the respondents state that market challenges will be difficult but manageable. Results of this survey indicate that there is a positive consumer sentiment despite market challenges. All the respondents of this survey were industry leaders within the construction industry in India.

India's construction industry was valued at over *** trillion Indian rupees in the first quarter of 2025. This was a significant increase compared to previous years, when the value shrank due to the coronavirus (COVID-19) pandemic. The country’s construction and manufacturing industries were among the worst hit at the time. However, the industry seemed to recover quickly and returned to pre-crisis levels again.  Developments in other producing industries The coronavirus (COVID-19) pandemic and the national lockdown from March to May 2020 had a differing impact on the producing sectors of the Indian economy. Similar to the construction industry, manufacturing reportedly shrunk in the second quarter of 2020. The agriculture sector did not witness a significant change, even showing higher employment numbers as a result of migrant workers returning to their homes. The utilities industry showed fluctuating values, with a peak in the fourth quarter of 2021. Impact of the construction industry Infrastructure construction had been at the core of economic development in India in recent years. Between the financial years 2016 and 2020, the manufacturing industry attracted the highest value of investments. The inflow of foreign direct investments into the infrastructure industries fluctuated over the last five years and amounted to around *** billion U.S. dollars in financial year 2024.  

In financial year 2023, employment within the real estate and construction sector in India stood at nearly ** million. Moreover, the number of employees across the real estate and construction sector was the lowest in fiscal year 2021 at just above **** million.